The cycle of articles on how to invest in cryptocurrencies with minimal risk and maximum profit we divided into three parts. If you are a newbie in the world of cryptocurrencies, we advise you to start reading from this article. If you find yourself as an experienced user, you can move on to information on how to protect your investment with the help of loans secured with cryptocurrencies, or how to double a profit while hodling bitcoins.
Is It Worth to Invest in Cryptocurrencies?
The price of Bitcoin in July has shown a maximum since the fall of 2018. Over the past few months, the value of Bitcoin increased more than 3 times. Despite short-term corrections, over a long period, the value of the main coin always illustrates growth. It has already come a long way from a few cents to tens of thousands of dollars for one coin.
Over the past year, the market has been cleared of thousands of fraudulent projects and organizations that didn't withstand market competition, as well as millions of people who wanted to get rich quickly doing nothing. This was a necessary step for the further development of crypto services and the companies which overcame a protracted correction in 2018.
Why Will The Value of Bitcoin Go Up? The cost of bitcoin will inevitably grow, due to the following reasons: — Bitcoin is gradually becoming widespread as payment method due to its anonymity and decentralization.
— Global companies trust in the growth of cryptocurrencies, for example, Facebook has introduced its own cryptocurrency Libra. The project may receive support from Visa, Mastercard, PayPal, Uber, eBay, and many other successful companies.
— Blockchain technologies are being actively implemented in various areas of the economy and human life: enterprises, virtual platforms, and state economies are organized on blockchains.
— The supply of coins is technologically limited, and the demand for it is growing from year to year. Taking into account these circumstances, there are all prerequisites to assert that the investments in the cryptocurrency market will continue to grow. Accordingly, the value of the assets will increase too.
How to Join The Cryptocurrency Market?
There are two main ways depending on the strategy that you will follow: to buy bitcoin or to earn it. You can earn bitcoins through mining activities, solving complicated algorithms using computer technology. If you are focused on the long term strategy, then mining will be the only way to get coins cheaper than buying them.
The second method is suitable for those who have a lot of free time. This is what you need to invest by visiting online advertising resources (bitcoin faucets) and earning Satoshis, small parts of bitcoin for viewing web pages. If you are aimed at a quick result and you do not have experience in cryptocurrencies, then the only option is to buy bitcoin. To purchase cryptocurrencies, there is a large selection of crypto exchanges, crypto exchangers, and OTC platforms.
Where to Buy Bitcoin?
We will not go into details about how to buy bitcoins, buy briefly highlight the main differences between each method:
— Buying bitcoin in the cryptocurrency exchanger is the simplest and quickest way to exchange fiat to crypto or vise versa. It is suitable for beginners and works identically as an traditional currency exchanger. According to drawbacks, we note that the exchange rate set by the exchanger is above the average market price and there are limits on the minimum amount of transactions.
— Buying cryptocurrency in the crypto exchanges allows you to choose a more favorable exchange rate, but this is not the most suitable way for the first purchase. The user should have skills and knowledge of certain nuances. The goal of most exchanges is to encourage users to complete transactions and store assets on their platforms, which are rather risky, therefore, high fees are often imposed on the withdrawal of funds. Most exchanges require the provision of personal data and the passage of the KYC/AML procedure.
— Buying bitcoins on P2P platforms is one of the most flexible options for acquiring cryptocurrencies. Among many offers from other users, you can choose the best exchange rate and find an offer to purchase cryptocurrency even for amounts of 50 hryvnias or 100 rubles. Also, P2P platforms are differed by the ability to receive payments, for example, to a bank card of a certain bank or electronic wallets (Yandex.Money).
Cryptocurrencies are worth buying when the rate approaches the minimum values or just started to go up. Bitcoin has all the prerequisites for tremendous growth, despite lingering and deep corrections. If the active growth of its price starts, then it might rise above the previous maximum value.Tweet